The Greek government has used the bond markets to raise €105m ($123m) for a new fund of funds for investment in Greek private equity in what is becoming a powerful new fundraising model.

The government, keen to boost the Greek private equity industry, whose portfolio is less than €400m at cost, have put €45m of initial cash into the fund of funds and guaranteed the €105m of bonds. Standard & Poor's and Fitch, the credit rating agencies, gave the bonds an 'A' rating. Deutsche Bank and two Greek banks, EFG Telesis Finance and NBG International, arranged the bond issue.